CBIC Introduces GST Appellate Tribunal (Procedure) Rules, 2025: An Advancement Towards Quicker Dispute Resolution

The Goods and Services Tax (GST) framework in India has made a notable advancement, with the Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, announcing the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025. Released through Gazette Notification G.S.R. 256(E) on April 24, 2025, these regulations are immediately applicable, providing an extensive procedural structure for the long-awaited GST Appellate Tribunal (GSTAT).

This initiative signifies an important achievement in the creation of a more organized, efficient, and transparent system for addressing GST disputes at the appellate stage.

The GSTAT is established under Section 109 of the Central Goods and Services Tax (CGST) Act, 2017. It acts as the second appellate authority within the GST legislation, allowing taxpayers or the department to appeal to the GSTAT if they are dissatisfied with a decision made by the first Appellate Authority or Revisional Authority.

Its formation is essential for several reasons:

• Specialized Forum: It offers a dedicated platform with judicial and technical members experienced in GST issues.
• Uniformity: It seeks to maintain consistency in judgments throughout various states.
• Reduced Burden: It is anticipated to significantly alleviate the workload on High Courts, which are presently addressing numerous GST writ petitions due to the lack of the Tribunal.
• Faster Resolution: Established procedures and timelines promise quicker resolutions of appeals.

The newly introduced Procedure Rules, formulated under Section 111 of the CGST Act, 2017, provide the working framework for the GSTAT, with the goal of promoting uniformity, procedural clarity, and digital efficiency.

The rules are comprehensive, comprising 15 chapters and 124 regulations, in addition to various forms and registers. Here are some of the most significant points:

Digital First - Compulsory E-filing:

• Rule 115 requires: All appeals, applications, interlocutory applications (using GSTAT FORM-01), responses, and documents must be submitted electronically through the designated GSTAT portal (efilingGSTAT).
• Manual submissions are allowed only under exceptional circumstances with prior consent from the Registrar.
• Notices, communications, and summons will also be sent electronically.

Hybrid Hearings:

• Proceedings may be held in person or electronically (via video conferencing), subject to the President's approval (Rule 115). This provides flexibility for litigants and representatives.

Defined Timelines:

• Appeal Filing: Taxpayers generally have a three-month period from the date of order communication to file an appeal (GSTAT FORM-05).
• Reply: Respondents are required to submit their reply within one month from the notice service date.
• Rejoinder: Applicants have the option to file a rejoinder within a month of receiving the reply.
• Urgent Listing: Provisions exist for expediting urgent matters, potentially listing them the next working day.
• Order Issuance: The Tribunal aims to deliver orders within 30 days following the final hearing (excluding holidays).
• Time Computation: The rules define how periods are calculated, excluding holidays. Delays may be excused with valid reasons (Rules 3, 14).

Documentation & Procedure:

• Appeals must include certified copies of the contested order (Rule 21).
• They should clearly outline facts and grounds and be properly verified (Rule 20, 22). Each paragraph should, ideally, address an individual point.
• Documents not in English or Hindi must have certified English translations (Rule 23).
• The Tribunal possesses powers akin to a Civil Court (under the Code of Civil Procedure, 1908) to summon witnesses, enforce attendance, solicit document discovery, and accept evidence via affidavits (Rule 84, 88, Section 111).

Tribunal Operations:

• Working Hours: The typical sitting hours are from 10:30 AM to 1:30 PM and 2:30 PM to 4:30 PM, and may be extended. Administrative offices function from 9:30 AM to 6:00 PM during working days.
• Cause Lists: Daily cause lists will be made available online and on notice boards (Rule 38).
• Public Proceedings: Hearings are usually open to public participation unless there are specific restrictions (Rule 48).
• Ex-Parte Decisions: The Tribunal may proceed ex-parte if a party does not show up without a valid reason (Rule 43).

Representation:

• Authorized representatives, such as advocates, CAs, CMAs, and CSs, are required to submit a Memorandum of Appearance or Vakalatnama, potentially using GSTAT FORM-04 (Rule 72).
• Members and representatives are subject to specific dress codes (Rule 77, 121, 122).

Fees:

• There are designated fees, for instance, ₹5,000 for record inspections (GSTAT FORM-03) or specific applications, along with ₹5 per page for certified copies (Rule 119).

Recusal:

• Members may recuse themselves due to conflicts of interest (personal, familial, or professional). Reasons may be recorded but not disclosed to involved parties (Rule 106).

Pre-deposit Context:

• Although not a part of these rules, keep in mind the GST Council had previously suggested lowering the mandatory pre-deposit to 10% of the disputed tax amount, with a cap of ₹20 crore each for CGST and SGST.

These rules indicate a significant transition towards a contemporary, digital, and hopefully more efficient appeals process.

• Transparency: The implementation of online filing, the publication of cause lists, and generally open hearings improve transparency.
• Efficiency: Established timelines and digital procedures are intended to accelerate dispute resolution.
• Accessibility: Hybrid hearing options enhance accessibility for litigants nationwide.
• Adaptation: Taxpayers and professionals are required to adjust to the obligatory digital filing system and thoroughly understand the new processes.
• Preparation: Taxpayers planning to appeal should prepare their draft appeals and documentation ahead of time.

The announcement of the GSTAT (Procedure) Rules, 2025, alongside the launch of the GSTAT portal, marks significant advancements in operationalizing the GST Appellate Tribunal. This framework is regarded as a potential "game-changer" for tax litigation in India.

While the Principal Bench is located in New Delhi, the timely establishment and staffing of the 31 state benches across various regions are essential for the system to operate effectively. The emphasis now lies on making these benches functional as soon as possible to manage the backlog of GST disputes, offering essential relief to businesses and enhancing taxpayer confidence in the GST framework.

Taxpayers and tax professionals should acquaint themselves with these regulations to successfully navigate the appellate process when the GSTAT is fully operational.

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